Tips for small & medium sized enterprises.

SMEs & Investments

Invest in Cash – it is often said that the most successful investors focus on cash first. You do need money to make money, so make sure you have sufficient cash reserves.

What will it take for your business to stay afloat should an unexpected, cash draining event took place? Allocate sufficient emergency budget for unplanned expenses – they do come up although uninvited.

Invest in your business (don’t rush to diversify) – consider re-investing some profits back into your organisation to increase the profitability of your enterprise:

Invest in Expertise – employ experts and delegate some of your responsibilities, invest in staff training – help your team become more productive.

Invest in Technology – find ways to avoid duplicating processes as the company continues to grow.

Invest in Cyber Security – cyber-crime is a real threat, which often goes unrecognized by small business owners. Hackers expect it to be so, hence often pick SMEs expecting them to be an easier (defenseless) target. You might think your business is too small to be at risk. However, if you have sufficient quality data e.g. clients’ contact info, payment details, etc. you’re not too small. Reportedly, UK SMEs were targeted over 200.000 times each, in 2016. This topic deserves more attention, hence we’re planning to revisit in the near future.

Invest in yourself – invest in your knowledge & work smarter not harder – invest in your skills and become more efficient hence able to do more in less time.

Develop a solid business strategy – better use the resources (including time) you already have access to.

Trust your staff to do stuff – once you’ve employed the right people and invested in training, trust your team to do what needs to be done. Allow them to embrace the challenge, so you don’t burn out.

Take a vacation or rest more– see yourself as an asset, not a slave to your business. Take care of you. If you’re overworked, tired and stressed out, your business will fail and if it succeeds you might not be there to reap the benefits of its success.

Invest in what you know. Don’t rush to invest in real estate just because another business owner is extremely successful in doing so. If you do, however, find out what it takes to become successful and then invest.

Match your investment strategy to who you are and to what you know. Do your research, become educated or employ an expert. Investments don’t come without risks, however they shouldn’t be a gamble. In the investment world, knowledge should precede action.

Take your time & don’t be led by emotions whether you’re making a decision to invest or ‘uninvest’. Investments are not get rich quick schemes – they’re long-term projects, so invest wisely &be patient.

If you find this article helpful, and you have not yet read Part 1 or Part 2 please go ahead and do so now.

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